Need Advice On A Deal Please!
Hi BP community!
First time posting here but I've been following the BP community for a while. Found a deal in NYC, in a relatively stable area. Next to a hospital, businesses. Lady is selling because she bought another house and tenants are already moving out. It's a 2 family with a legal basement, 3/2/3 layout. Basement needs some minor cosmetic work but that's about it.
Asking $580k but wants "cash buyer" (quick closing - within 30 days). I can make an offer of up to full price as I'm preapproved with either an FHA loan or conventional. I'm thinking FHA since it'll give me the ability to put a lower down payment and put the rest into a second property. I'm still relatively young (25) so I'm trying to get as many properties under my belt as possible.
Rents are 2200/1800/1800. Expenses would be $4000 tax, $3000 insurance, heating approx. $1800. I'd be putting approx. $60-70k all in if I went the FHA route and $115-$120k if conventional. I would be managing it myself - live about 20 minutes away.
Please advise if I should pull the trigger. I'm leaning towards yes considering its a reasonable return for NYC but also don't want to be over my head.
Thanks in advance!